- The assertions followed the recent approval of an increased price of electricity prepaid meters by NERC.
- Importers of the semi-finished prepaid meters and meter assembling plant owners wanted the prices to be higher.
Power sector Experts have hinged the increase in prepaid electricity meters on fluctuations in the foreign exchange market. The experts also said the increase in Customs charges and Naira devaluation, among others, have influenced the hike. The experts made these assertions following the recent approval of an increase in the price of prepaid meters by the Nigerian Electricity Regulatory Commission (NERC).
In an interview with the News Agency of Nigeria, a legal consultant and energy advisor, Prof. Yemi Oke, said the price increase was unavoidable, considering the present situation in the country. He said that the price of meter components had increased due to the current exchange rates. “It is not for meter alone, even those goods that are manufactured locally. It also affects imported meters assembled in Nigeria or manufactured in Nigeria. The meter component has gone up, given the current exchange rates.
“There is a need for government to look into the issues of forex, particularly for metering. What matters is that people should have access to meters, and the meters are properly calibrated so that no consumers are shortchanged. I wonder if some meter had been calibrated in a way. I’ll advise that Nigerians should not be subjected to meter manipulation or calibrated in a way to reap them. There is no evidence that existing meters are faulty or malfunctioning. There is no point calling for upgrading or calibration,” Oke added.
On his part, the President of Nigeria Consumer Protection Network, Mr Kunle Olubiyo, said that importers of the semi-finished prepaid meters and meter assembling plant owners wanted the prices to be higher. According to him, the importers and plant owners wanted the price of single-phase meters to be N90,000 while a three-phase at N160,000 or more. Olubiyo advised stakeholders to work out modalities to enable electricity consumers to acquire already calibrated electricity meters at designated points under strict supervision.
He said, “Considering the low income or disposable incomes of an average Nigerian, it might be difficult for many to afford the new rates without a mechanism for refunds via electricity token. This may further increase the huge metering gaps in the electricity market,” he said.
Furthermore, Mr Adetayo Adegbemle, Convener, PowerUp Nigeria, said the increase in meter prices was a response to the changes in the economic indices. Adegbemle lauded NERC for not loading the full effect on the published prices, adding, “However, this is an opportunity to further push for reverting to local content and manufacturing as an effective measure to control the prices of meters. We have pushed for using funds saved from fuel subsidy removal to address this issue of metering gap effectively. This is something that will reach and help Nigerians manage their funds.”